Germany's Siemens says to axe about 11,600 jobs

Tags: Jobs
German industrial giant Siemens plans to eliminate about 11,600 jobs around the world as part of a major restructuring, a company spokesman said today.`

"These jobs will be cut," the spokesman said, confirming remarks made by chief executive Joe Kaeser to a conference of investors and analysts in New York.

The spokesman said some staff may be redeployed in company "divisions that will be reinforced," without providing further details.

"It is not yet clear how many people will be recommended for other positions," he said, adding that the company was in talks with the works council on the restructuring.

Some 7,600 positions will be axed as part of a company overhaul announced by Kaeser on May 7 in which 16 divisions will be consolidated into nine and certain levels of hierarchy will be eliminated, the spokesman said.

Another 4,000 jobs will be cut as part of a regrouping of regional activities.

Kaeser aims to slash annual costs for the group by one $ 1.4 billion per year from 2016.

The job cuts come in addition to 15,000 already slashed under a cost-cutting plan.

Siemens said in early May that it expected its markets "to remain challenging in fiscal 2014" with a sustainable recovery not expected until late in the fiscal year.

Kaeser, who was previously chief financial officer at Siemens which also manufactures wind turbines, trains and medical equipment, has said he wants to renew the focus on the company's energy activities under a plan called Vision 2020.

Siemens is currently considering whether to challenge General Electric in its $ 17-billion bid to take over part of France's Alstom.

But Siemens announced its layoffs just as GE upped the ante by pledging to create 1,000 jobs in France, where the embattled government has passed a new law that would allow it to veto unwanted foreign takeovers of major French companies.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • RBI must keep a strict vigil on private debt inflows

    A little over a year ago, RBI governor Raghuram Rajan had observed that central banks of the developed world were excessively liberal with printing mo

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

When too little could mean too late

The calamity in Jammu and Kashmir has once again shown ...

Kuruvilla Pandikattu SJ

Genuine spirituality means true humanity

Every religion promises salvation to its followers. Rarely do we ...

Gautam Gupta

Moral policing is the need of the hour

Recently, when Deepika Padukone raised her voice against an objectionable ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture